WELLESLEY, MA--(Marketwired - July 14, 2016) - The adoption of advanced analytics has gained significant traction across the globe in recent years as organizations try to gain a competitive edge and optimize their operations costs. BCC Research reveals in its new report that the market should grow due to increased realization of value by end users, cost reductions from cloud deployment models and the emergence of niche players bringing newer innovative solutions and services to market at lower costs than established players.
Advanced analytics is the analysis of data using sophisticated quantitative methods such as statistics, predictive and descriptive data mining, visualization and optimization for forecasting and providing insights into future trends.
The global market for advanced analytics, which totaled $207.4 billion in 2015, should reach almost $219.3 billion by 2020, reflecting a five-year compound annual growth rate (CAGR) of 1.1%. Services as a segment, which totaled $107.5 billion in 2015, should reach almost $114.6 billion in 2020 on a five-year CAGR of 1.3%. Software tools as a segment is expected to reach almost $89.4 billion by 2020, up from $83 billion in 2015, thanks to a five-year CAGR of 1.5%.
Among key regions, North America leads in implementing advanced analytics across its diverse organizations, followed by Europe and Asia-Pacific (APAC). The exponential rise of data, increased competition in the market and the need to provide better decision support along with the penetration of mobile and social media are among the factors driving adoption of advanced analytics by enterprises in North America. In Latin America, advanced analytics remains at the nascent stage, but it is expected to grow in the coming years.
North America, the largest market size with a value of $49.6 billion in 2015, should grow at an estimated five-year CAGR of 1.7% through 2020. APAC is expected to grow at the highest rate over the forecast period with a five-year CAGR of 2.8%. Emerging economies such as those in India and China offer new growth and investment opportunities.
The advent of smart technologies such as internet banking, mobile banking and real-time stock market data management has developed significantly in the banking, financial services and insurance (BFSI) sector with advanced analytics gaining tremendous popularity and momentum. The consistent demand for channels such as point of sale (POS), ATMs and online transactions to gather data about customers to generate insights has further enhanced the adoption of analytics.
"Cloud-based services and Software as a Service (SaaS) delivery models for advanced analytics services are still in the primitive stages and of lesser impact than their matured counterparts," says BCC Research analyst Arup Banerjee. "Organizations have shown a high level of interest, but adoption rates are not as high as desired. Service providers are preparing for an expected upswing in non-premises delivery by building out offerings in this space or creating cloud-based platforms. Other interesting and emerging delivery models gaining ground are analytics as a service or business process as a service, where insight and analysis are provided by service providers via their platforms and solutions."
Advanced Analytics Technologies: Global Markets (IFT128A) analyzes the market by regional segments based on software tools, integrated hardware appliances and advanced analytics services. A comprehensive review of global market drivers and trends, with data from 2014, 2015 and projections of CAGRs through 2020 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.